Australian Broker Call

Morgans rates AQZ as Add (1) -

Alliance Aviation Services reported FY22 results which came in below Morgans' expectations, with underlying earnings at the lower end of the company's guidance.

The broker views the loss of experienced pilots and the pilot shortage, as contributing factors to the slower rollout in the E190 deployment, with Morgans not anticipating Alliance will have sufficient staffing capacity for the E190's until the 4Q23.

The ongoing delay in the rollout in the E190's has led Morgans to lower earnings forecasts by -16.8% and -9.3% for FY23 and FY24, respectively.

The stock trades at a -37% discount to the Qantas ((QAN)) takeover offer price of $4.75, due to uncertainty over the ACCC approval. Nevertheless the broker views the stock as attractively priced, even if the takeover doesn't eventuate.

The Add rating is retained and the price target is lowered to $4.50 from $5.05.

Target price is $4.50 Current Price is $3.40 Difference: $1.1
If AQZ meets the Morgans target it will return approximately 32% (excluding dividends, fees and charges).

Current consensus price target is $4.58, suggesting upside of 27.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates BBN as Buy (1) -

Citi views the FY22 earnings report as -4% below their expectations, but in line with consensus.

The broker highlighted the 151bp increase in gross margins to 38.6%, from the expansion in the luxury and private labels and the new national distribution centre.

The deferral of new store openings and a shortage of the company's best selling pram deferred sales into FY23, notes the analyst.

Citi considers the expansion into clothes, toys and food as raising the total addressable market to $3.5bn, with the market place offering growing without considerable new investment.

Lower sales and higher costs from the New Zealand expansion has lowered broker earnings forecasts by -4% and -3% for FY23 and FY24, respectively.

The Buy rating is retained with the long term growth opportunities remaining positive.

The price target is reduced to $5.62 from $6.22 from forecasts changes and a lower valuation multiple.

Target price is $5.62 Current Price is $4.62 Difference: $1
If BBN meets the Citi target it will return approximately 22% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates BBN as Outperform (1) -

FY22 revenue for Baby Bunting met Macquarie's expectation, while underlying profit was a 3.8% beat. For FY23, management expects mid-single-digit same store sales growth, even though initial trading to-date is showing 15.3% growth.

The broker makes only minor forecast changes and lowers its target to $5.90 from $6.05 and retains its Outperform rating.

Store rollouts are supporting growth and gross profit margins are benefiting from the new distribution centre efficiencies, as well as the expansion of private label and exclusive products.

Target price is $5.90 Current Price is $4.62 Difference: $1.28
If BBN meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates BBN as Overweight (1) -

While FY22 earnings for Baby Bunting were 3-4% ahead of Morgan Stanley's expectation, sales missed by -4%. Second half sales were weighed down by -$10m due to delays for store openings and -$3m from lack of stock, explains the analyst.

Positively, according to the broker, same store sales growth was running at 15.9% up to August 10 in the new financial year and the FY22 gross margin exceeded Morgan Stanley's forecast by 10bps.

The Overweight rating and $6.00 target are retained. Industry View: In-line.

Target price is $6.00 Current Price is $4.62 Difference: $1.38
If BBN meets the Morgan Stanley target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates BBN as Add (1) -

Baby Bunting reported FY22 earnings which were in line with Morgans' expectations. However, 2H22 sales disappointed the analyst, due to a delay in four store openings (pushed into Fy23), but gross margins showed a 150bpts improvement from a better sales mix and improved operating efficiencies.

The launch of the Baby Bunting market place is considered as expanding the market opportunity for the company from$2.5bn to $3.5bn, states the broker.

Adjusting for higher costs in New Zealand, the analyst lowers earnings forecasts -5% for FY23/FY24, but remains positive on Baby Bunting as the only way for investors to gain exposure to the specialised "baby" sector, with an omni-channel offering and growing New Zealand presence.

Morgans maintains the Add rating and $5.00 target price.

Target price is $5.00 Current Price is $4.62 Difference: $0.38
If BBN meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates BBN as Buy (1) -

Baby Bunting's FY22 full-year result fell a tad shy of consensus and Ord Minnett's forecasts as sales missed, but the broker considered it a solid performance.

Gross profit margins rose thanks to higher private label sales and a good supply chain performance.

Ord Minnett says its investment thesis remains solid, the broker expecting organic sales and market share growth; more store roll-outs; improved operating margins; and greater online sales penetration.

Buy rating retained. Target price falls to $6 from $6.60.

Target price is $6.00 Current Price is $4.62 Difference: $1.38
If BBN meets the Ord Minnett target it will return approximately 30% (excluding dividends, fees and charges).

Current consensus price target is $5.70, suggesting upside of 16.9% (ex-dividends)

The company's fiscal year ends in July.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates BPT as Buy (1) -

In an initial response to Beach Energy's second half result, UBS has noted the company delivered a half with net profit missing market expectations.

The company's reported net profit of $291m in the second half missed UBS's expected $343m by -15%, with the broker attributed the discrepancy to higher royalty expenses and a $30m boost to restoration provisions.

The broker notes FY23 guidance implies no production growth in the coming year, and UBS expects the stock to trade lower of a soft outlook. The Buy rating and target price of $2.05 are retained.

Target price is $2.05 Current Price is $1.85 Difference: $0.2
If BPT meets the UBS target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $1.97, suggesting upside of 18.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates BSL as Buy (1) -

It is Citi's initial observation that BlueScope Steel, in today's FY22 release, delivered a resounding beat on consensus expectations, while the balance sheet remained net cash.

But it appears the sting hides in first-half FY23 guidance which, on Citi's assessment, is likely lower than most would have expected.

Driven by lower HRC spreads in the US and weaker pricing in Asia, BlueScope Steel's guidance for H1 is EBIT to be in $800-$900m range, while Citi's forecast sits at $1.3bn (suggesting serious downgrade is necessary).

Target price is $22.50 Current Price is $16.89 Difference: $5.61
If BSL meets the Citi target it will return approximately 33% (excluding dividends, fees and charges).

Current consensus price target is $21.79, suggesting upside of 24.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates CAR as Buy (1) -

In initial response to today's FY22 release by Carsales, UBS comments reported financials contain no surprises, which doesn't surprise given management provided guidance in late June.

While trading conditions are trending better across all business segments, which is interpreted as a positive, UBS does point out, otherwise management's FY23 guidance remains a bit vague.

Also, indications are momentum in new products is "strong". UBS anticipates margin increase in FY23 while its forecasts do not as yet incorporate the Trader Interactive acquisition.

Target price is $25.00 Current Price is $21.65 Difference: $3.35
If CAR meets the UBS target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $22.98, suggesting upside of 0.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates DDR as Initiation of coverage with Hold (3) -

Ord Minnett initiates coverage on Dicker Data with a Hold rating and $12 target price.

The broker notes the domestic information and communications technology market has posted a 5.5% compound annual growth rate (CAGR) over the past five years as business migrate to the cloud and digitally transform, and Dicker Data has posted a five-year EPS CAGR of 13.3%.

Ord Minnett notes Dicker Data has delivered above industry top-line growth, thanks to value-added services, growing market share and secular demand, expecting the domestic market will post a 5.3% CAGR over the next few years. The broker forecasts an EPS CAGR of 11% for FY23 to FY24.

Supply chain challenges and covid demand issues could prove a near-term hurdle, posits the broker, given: the company's high inventories; its leverage to supply chain availability; and a likely slowing direct corporate IT spend which could pressure both revenue and margins.

Target price is $12.00 Current Price is $11.45 Difference: $0.55
If DDR meets the Ord Minnett target it will return approximately 5% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates DTL as Initiation of coverage with Buy (1) -

Ord Minnett initiates coverage of Data#3 with a Buy rating and $7.50 target price.

The broker notes the domestic information and communications technology market has posted a 5.5% compound annual growth rate (CAGR) over the past five years as business migrate to the cloud and digitally transform, and Data#3  has posted a five-year EPS CAGR of 21.6%.

Ord Minnett notes Data#3 has delivered above industry top-line growth, thanks to value-added services, growing market share and secular demand, expecting the domestic market will post a 5.3% CAGR over the next few years. The broker forecasts an EPS CAGR of 17.5% for FY23 to FY24.

Supply chain challenges and covid demand issues could prove a near-term hurdle, posits the broker, but the Ord Minnett says Data#3 is fairly well insulated.

Target price is $7.50 Current Price is $6.30 Difference: $1.2
If DTL meets the Ord Minnett target it will return approximately 19% (excluding dividends, fees and charges).

Current consensus price target is $6.56, suggesting upside of 1.6% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates ECX as Outperform (1) -

Macquarie leaves its Outperform rating and $2.98 target unchanged for Eclipx Group after 2Q results for peer Custom Fleet were consistent with anticipated trends for A&NZ auto finance companies.

Element Fleet Management, the owner of Custom Fleet, raised FY22 guidance with tailwinds including “waning impact of the pandemic, the gradual increase in OEM deliveries, and inflation”.

Target price is $2.98 Current Price is $2.56 Difference: $0.42
If ECX meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.99, suggesting upside of 17.4% (ex-dividends)

The company's fiscal year ends in September.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates EDV as Outperform (1) -

Macquarie highlights electronic gaming machine revenues rose 21% year-on-year in July and up 33% compared to pre-covid levels, consistent with recent trends. Volumes also hit a record high in the month.

The broker expects these revenue trends to continue,  with ongoing benefits from easing restrictions and regulatory reforms introduced in late-May. 

The broker's Outperform rating and $7.70 target are maintained for Endeavour Group, with strength in slot volumes aiding margins.

Target price is $7.70 Current Price is $7.97 Difference: minus $0.27 (current price is over target).
If EDV meets the Macquarie target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $7.44, suggesting downside of -6.8% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.1

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates GPT as Buy (1) -

In an initial response to GPT Group's first half result, UBS noted with the first half ahead of expectation, supported by a $9m land tax rebate, the company is also ahead of full year guidance.

The company delivered funds from operations of $326.5m, compared to UBS's anticipated $308.3m, equating to funds from operations per share of 17.1 cents, compared to an anticipated 16.1 cents. The broker also noted a 97.5% occupancy rate, noting office leasing remains a key focus. 

The Buy rating and target price of $4.58 are retained.

Target price is $4.58 Current Price is $4.30 Difference: $0.28
If GPT meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).

Current consensus price target is $4.80, suggesting upside of 6.4% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: -0.2

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates HCW as Outperform (1) -

Following FY22 results for HealthCo Healthcare & Wellness REIT, Macquarie lowers its FY23-25 funds from operations (FFO) forecasts by -7.6%, -4.5% and -1.5%, respectively. Headwinds are thought to include the sale of the Masters site in St Marys in Sydney, and delay in settlement of acquisitions. 

FY23 FFO guidance of 6.8cps was -10.5% below the broker's expectations. Management announced a 10% buyback and aims to be acquisitive, though Macquarie thinks the program may be ambitious, and alternative funding beyond debt may be required.

The broker's target falls by -3% to $2.01 and the Outperform rating is kept in anticipation of meaningful FFO growth from a number of opportunities.

Target price is $2.01 Current Price is $1.64 Difference: $0.37
If HCW meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates HCW as Equal-weight (3) -

Following FY22 results for HealthCo Healthcare & Wellness REIT, Morgan Stanley leaves its $1.70 target and Equal-weight rating unchanged.

Following a review of the mismatch between a forecast FY23 dividend of 7.5cpu and funds from operations (FFO) guidance of 6.8cpu, the broker feels there should be full cash flow coverage from FY24, with an opportunity to grow.

Target price is $1.70 Current Price is $1.64 Difference: $0.06
If HCW meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges).

Current consensus price target is $2.00, suggesting upside of 16.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates IAG as Buy (1) -

Insurance Australia Group reported FY22 earnings in line with expectations, due to the pre-released profit announcement. The updates were "nuanced" according to Citi.

The broker highlighted inflation is eroding the the company's price increases with insurance margins under pressure, although some improvement is expected in the second half of 2022, unless inflation accelerates.

Gross written premiums are forecast to rise 8.5% with the improvement stemming from rate rises rather than volume growth, which remains the 5-year target for company, the analyst points out.

Broker earnings forecasts are adjusted marginally, by 1% for FY23 and -2% for FY24.

The Buy rating is retained and the price target is raised to $5.30 from $5.10.

Target price is $5.30 Current Price is $4.66 Difference: $0.64
If IAG meets the Citi target it will return approximately 14% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates IAG as Outperform (1) -

Credit Suisse notes higher underlying investment returns and lower expense ratios have seen Insurance Australia Group deliver an 80 basis point improvement to underlying margins in the second half, and the broker anticipates investment yields to support a further 1.6% margin boost in the coming year.

The broker highlights a company focus on retention over new business, and that the company has lifted premium rates which Credit Suisse expects will balance pressures of inflation.

The Outperform rating is retained and the target price decreases to $5.37 from $5.44.

Target price is $5.37 Current Price is $4.66 Difference: $0.71
If IAG meets the Credit Suisse target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates IAG as Outperform (1) -

Macquarie spies no new information in FY22 results for Insurance Australia Group, which were pre-released on July 22, along with FY23 guidance.

The broker makes minor changes to EPS forecasts and the target increases to $5.50 from $5.40.

The analyst likes the small inflationary hedge presented by exposure to general insurers and feels Insurance Australia Group is currently cheap. Outperform.

Target price is $5.50 Current Price is $4.66 Difference: $0.84
If IAG meets the Macquarie target it will return approximately 18% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates IAG as Underweight (5) -

Following FY22 results for Insurance Australia Group, Morgan Stanley thinks margins can now be better protected in the 1H of FY23, as management confirmed it had increased pricing around March. The group's multi-year reinsurance renewal is also thought to help.

Despite holding this view, the analyst feels management will not attain its 14-16% margin target partly because of the lag between price increases and earnings, and reserving issues.

Despite pre-reporting of the FY22 result, cash EPS and the 2H dividend missed Morgan Stanley's expectations by -7% and -20%, respectively.

The target rises to $3.90 from $3.75 though the broker's Underweight rating remains due to a high price to earnings multiple in FY24.

Target price is $3.90 Current Price is $4.66 Difference: minus $0.76 (current price is over target).
If IAG meets the Morgan Stanley target it will return approximately minus 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates IAG as Downgrade to Hold from Add (3) -

Morgans notes the FY22 Insurance Australia Group earnings report came in line with the pre-released downgrade of $374m, compared to $474m in the previous year.

FY22 numbers were mixed according to the analyst with an improving trend in underlying insurance margins in 2H22, which the company is guiding to continue into FY23 of between 14-16%.

Reserve strengthening and higher natural disasters events were highlighted as providing weakness in FY22.

Morgans' earnings forecasts are lowered -9% for FY23 and FY24 with reduced estimated investment income and inflation noted as a key earnings risk.

 The price target is reduced to $4.95 from $5.09 and the analyst downgrades the rating to Hold from Add as the share price has reached the fair value.

Target price is $5.09 Current Price is $4.66 Difference: $0.43
If IAG meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates IAG as Buy (1) -

Insurance Australia Group's pre-reported earnings nosed Ord Minnett's forecasts but the dividend of 5c strongly outpaced the broker's 1c forecast.

Ord Minnett says that despite the rise in inflation (IAG's pricing lagged), management expects to sufficiently raise rates to meet its 14% to 16% FY23 margin target (FY22 margins weakened in line with guidance).

The broker consider reserves now appear reasonable assuming inflation retreats but the company's capital position was weaker than estimated due to a sharp rise in software capitalisation and reduced reinsurance cover. Still, Ord Minnett believes overall it is fine and should normalise in line with capital expenditure.

The broker spies smoother sailing ahead, noting the cycle is turning favourable in commercial lines, although personal lines remain under pressure.

Buy rating retained. Target price rises to $5.40 from $5.30.

Target price is $5.40 Current Price is $4.66 Difference: $0.74
If IAG meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IAG as Sell (5) -

While UBS considers Insurance Australia Group's core trends to have moved positively in the last six months, the broker retains a cautious view of downside risk to earnings.

The broker notes the insurer continues to face a number of headwinds, including a 1.7 percentage point increase to catastrophe budgets and a 1.9 percentage point increase to reinsurance costs, but expects price increases and yields of 3.5% per annum to sufficiently offset.

Presently, UBS sees more upside risk in other general insurers. The Sell rating is retained and the target price increases to $4.20 from $4.10.

Target price is $4.20 Current Price is $4.66 Difference: minus $0.46 (current price is over target).
If IAG meets the UBS target it will return approximately minus 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.97, suggesting upside of 10.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UBS rates IMD as Neutral (3) -

In initial response to today's FY22 release, UBS analysts believe Imdex revealed a "solid" though in-line result that showcased the company's significant operating leverage.

Management did not provide FY23 guidance (as expected, says UBS) but did indicate demand remains strong in all areas.

Both UBS and market consensus are currently forecasting FY23 EBITDA growth of 9% versus FY22.

Target price is $3.10 Current Price is $2.03 Difference: $1.07
If IMD meets the UBS target it will return approximately 53% (excluding dividends, fees and charges).

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates JBH as Buy (1) -

In an initial response to JB Hi-Fi's full year result, Citi expects sales momentum will accelerate into the first half of FY23 on the back of strong July trading, with like-for-like sales for JB Hi-Fi Australia up 9.2% in the month and The Good Guys up 7.8%.

The broker noted the company delivered earnings of $794.6m, up 7% on the previous year. Citi anticipates better stock levels will benefit during key sales periods in the coming half, and expects momentum will slow moving into the second half of FY23.

The Buy rating and target price of $47.00 are retained.

Target price is $47.00 Current Price is $45.55 Difference: $1.45
If JBH meets the Citi target it will return approximately 3% (excluding dividends, fees and charges).

Current consensus price target is $46.86, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates JBH as Hold (3) -

In an initial response to JB Hi-Fi's first half result, Ord Minnett notes pre-reported net profit of $544.9m is up 7.7% from peak covid earnings in FY21 and up 118% on pre-covid earnings in FY19.

The broker also noted The Good Guys has reported margin expansion of 89 basis points year-on-year to 23.3%, with margins now in line with JB Hi-Fi Australia. 

The Hold rating and target price of $44.00 are retained.

Target price is $44.00 Current Price is $45.55 Difference: minus $1.55 (current price is over target).
If JBH meets the Ord Minnett target it will return approximately minus 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $46.86, suggesting upside of 3.9% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates JDO as Buy (1) -

Citi offers an earnings preview for Judo Capital. The FY22 maiden results are expected to be announced August 25.

The broker anticipates Judo Capital will report earnings in line with the prospectus forecasts of $8m in cash profits and a $6bn loan book, with the analyst stressing these results will have been achieved despite the changing macro background of a 1.85% cash rate, and higher business credit growth.

Broker earnings forecasts are reduced by -13% and -2% for FY22 and FY23, respectively, following the 30 June APRA statistics.

The Target price falls to $1.30 from $1.90 with Citi looking to management for a higher degree of certainty of how the company can grow in a more uncertain macro environment.

A Buy rating is retained.

Target price is $1.30 Current Price is $1.30 Difference: $0
If JDO meets the Citi target it will return approximately 0% (excluding dividends, fees and charges).

Current consensus price target is $1.86, suggesting upside of 40.0% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates MGR as Outperform (1) -

Mirvac Group has delivered operating earnings of 15.1 cents per share and a 10.2 cents per share dividend for FY22, which Credit Suisse notes is a beat to company guidance. The broker highlights higher residential pre-sales provide positive visibility moving into FY23.

The company is now guiding to 2.6% growth in the coming year, suggesting operating earnings of at least 15.5 cents per share, while dividends look to grow 2.9% to 10.5 cents per share. Credit Suisse considers guidance positive given market conditions and expected rising debt costs.

The Outperform rating is retained and the target price decreases to $2.45 from $2.49.

Target price is $2.45 Current Price is $2.12 Difference: $0.33
If MGR meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $2.47, suggesting upside of 13.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

Market Sentiment: 0.8

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates OZL as Equal-weight (3) -

While hard to quantify without project valuation metrics, Morgan Stanley sees potential valuation upside for OZ Minerals after the signing of a term sheet to purchase the Kalkaroo project from Havilah Resources ((HAV)).

The analyst points to potential synergies with OZ Minerals' operations in South Australia, particularly at Prominent Hill.

The $17.20 target and Equal-weight maintained. Industry View: Attractive.

Target price is $17.20 Current Price is $25.70 Difference: minus $8.5 (current price is over target).
If OZL meets the Morgan Stanley target it will return approximately minus 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $23.85, suggesting downside of -7.5% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.4

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates RMD as Downgrade to Neutral from Buy (3) -

According to Citi, ResMed 4Q22 results were in line with consensus but beat on EPS from lower interest and tax charges.

The broker highlights the surprise results from the "card-to-cloud" devices, which offset the lack of available telecom chips.

ResMed pointed to ResMed aiming for sustained market share growth from Philips. No guidance for sales from the recall in FY23 was offered, however the company expects Philips to remain out of the market for another 12 months.

Following the better than anticipated 4Q22 results, Citi's earnings forecasts are raised by 2% and 4%, respectively for FY23 and FY24.

The target price is raised to $37.00 from $34.50 and the rating is downgraded to Neutral from Buy, due to valuation.

Target price is $37.00 Current Price is $33.55 Difference: $3.45
If RMD meets the Citi target it will return approximately 10% (excluding dividends, fees and charges).

Current consensus price target is $36.66, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates RMD as Outperform (1) -

ResMed is anticipating improvement in device revenue in the coming quarter as conditions for chip supply improve and the company's Card-to-Cloud device launch gains momentum in the US. Credit Suisse forecasts 20% device revenue growth in FY23.

The broker also anticipated ResMed will continue to build its backlog until supply constraints are removed, or until Philips returns to the market. Credit Suisse notes there is a possibility the Department of Justice could restrict Philips from returning to the market until its quality control systems are approved by the FDA, which could see ResMed benefit from limited competition through to FY24.

The Outperform rating is retained and the target price increases to $39.00 from $38.50.

Target price is $39.00 Current Price is $33.55 Difference: $5.45
If RMD meets the Credit Suisse target it will return approximately 16% (excluding dividends, fees and charges).

Current consensus price target is $36.66, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates RMD as Outperform (1) -

Following in-line 4Q and FY22 results for ResMed, Macquarie sees upside to the consensus forecast and retains its Outperform rating and $38.70 target price. Management sees increased device production in FY23 on reduced supply chain pressures.

Excluding covid-related ventilator sales in the previous corresponding period, 4Q device revenue rose by 6% year-on-year and up 14% relative to the 3Q. These figures were supported, notes the analyst, by the launch of AirSense 10 Card-to-Cloud devices.

Target price is $38.70 Current Price is $33.55 Difference: $5.15
If RMD meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges).

Current consensus price target is $36.66, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgan Stanley rates RMD as Equal-weight (3) -

Morgan Stanley highlights in-line 4Q revenue and a 3% beat versus the consensus forecast for ResMed, due to strength in US devices, which were largely offset by soft international sales and adverse currency swings.

The analyst believes the AirSense 10 card-to-cloud only CPAP devices have helped the company meet demand in the middle of the global chip shortage.

Positively, the analyst feels Philips may not compete for new patients for around 12 months and management is confident on the permanency of market share gains.

The Equal-weight rating is kept on valuation, while the broker lifts its target to $31.70 from $29.10. Industry view In-Line.

Target price is $31.70 Current Price is $33.55 Difference: minus $1.85 (current price is over target).
If RMD meets the Morgan Stanley target it will return approximately minus 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $36.66, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates RMD as Add (1) -

Morgans highlights ResMed reported a beat on revenue and earnings for the 4Q22, with a decline in tax. Higher prices and a favourable product mix, were offset by higher costs (freight and manufacturing).

Looking ahead, the broker expects demand to remain robust and above pre-covid levels, with sales of up and above, US$250m, possible from the Philips recall, resulting in "permanent" market share gains.

Supply chains remain erratic, but stabilising to improving, and ResMed continues to grow the card-to-cloud business which has assisted in managing component issues.

Broker earnings forecasts are adjusted -12% over FY22 to FY24,from higher forecast operating costs, which Morgans' views as near term headwinds, 

The target price is adjusted to $37.08 from $37.95 and the Add rating is maintained with a longer term positive fundamentals.

Target price is $37.08 Current Price is $33.55 Difference: $3.53
If RMD meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges).

Current consensus price target is $36.66, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates RMD as Downgrade to Hold from Buy (3) -

ResMed's June-quarter net income outpaced Ord Minnett's forecasts but its quarterly dividend fell shy.

While acknowledging ResMed's strong competitive position, the broker believes this upside is priced in and leaves little room for error.

EPS forecasts fall -1% to -2% in the near term. While sales are tipped to rise, gross margins are forecast to fall (and have been falling for the past two years due to covid-induced freight costs and a switch to lower margin devices).

Meanwhile, the acquisition of Medifox has delayed the prospect of a buyback, notes the broker.

Rating downgraded to Hold from Buy. Target price falls to $36.50 form $38.

Target price is $36.50 Current Price is $33.55 Difference: $2.95
If RMD meets the Ord Minnett target it will return approximately 9% (excluding dividends, fees and charges).

Current consensus price target is $36.66, suggesting upside of 9.3% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY23:

Forecast for FY24:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates SGR as Outperform (1) -

Macquarie highlights electronic gaming machine revenues rose 21% year-on-year in July and up 33% compared to pre-covid levels, consistent with recent trends. Volumes also hit a record high in the month.

The broker expects these revenue trends to continue, with ongoing benefits from easing restrictions and regulatory reforms introduced in late-May. 

The Outperform rating and $3.60 target are maintained for Star Entertainment.

Target price is $3.60 Current Price is $2.91 Difference: $0.69
If SGR meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges).

Current consensus price target is $3.54, suggesting upside of 21.2% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Ord Minnett rates SHL as Accumulate (2) -

Sonic Healthcare competitor Synlab June-quarter results provide a read-through for Sonic, says Ord Minnett.

The company nosed out consensus and raised revenue guidance but inflation was an issue. The company also impaired the goodwill associated with its German operations, suggesting not all is running smoothly.

But the broker considers the risk to Sonic's FY22 results to be low.

Accumulate rating and $37.50 target price retained.

Target price is $37.50 Current Price is $33.59 Difference: $3.91
If SHL meets the Ord Minnett target it will return approximately 12% (excluding dividends, fees and charges).

Current consensus price target is $37.13, suggesting upside of 10.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Morgans rates SMR as Add (1) -

Morgans remains upbeat about Stanmore Resources following the robust 1H22 earnings report, which beat expectations, due to higher realised prices from the BMC assets.

Disappointingly, notes the analyst is the lift in 2H22 cost guidance of 15% with Morgans now forecasting higher costs through to FY24.

The 20% acquisition of Mitsui's 20% stake in the BMC assets (SMC joint venture) for US$380m in cash is viewed positively, but the delay in de-gearing the balance sheet will also defer dividend payments.

The broker's earnings forecasts are adjusted for costs, offset by higher asset ownership.

The Add rating is maintained and the target price rises to $3.45 from $3.20.

Target price is $3.45 Current Price is $2.24 Difference: $1.21
If SMR meets the Morgans target it will return approximately 54% (excluding dividends, fees and charges).

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates SVW as Outperform (1) -

Adjusting forecasts to account for modeling by Credit Suisse's Building Materials team, the broker's earnings per share forecasts for Seven Group have been updated 0.6%, -5.1% and -1.6% through to FY24. 

The broker retains its view that Seven Group is materially undervalued, but notes a re-rating looks unlikely near-term, and remains cautious on management guidance, higher interest costs, and ongoing poor market sentiment ahead.

The Outperform rating is retained and the target price decreases to $22.15 from $26.55.

Target price is $22.15 Current Price is $17.96 Difference: $4.19
If SVW meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges).

Current consensus price target is $25.34, suggesting upside of 40.5% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 1.0

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Credit Suisse rates TPW as Downgrade to Neutral from Outperform (3) -

Credit Suisse notes growth looks to be slowing for Temple & Webster, with site traffic declining -22% year-on-year in July. The broker remains positive on the long-term opportunity, but anticipates the company will suffer slow revenue growth in FY23 as it cycles the higher growth of FY22.

The broker is forecasting Residential, Trade and Commercial revenue growth of 5% year-on-year in FY23 and has updated its earnings per share forecasts -1%, -47% and -26% through to FY24.

The rating is downgraded to Neutral from Outperform and the target price decreases to $4.91 from $9.59.

Target price is $4.91 Current Price is $4.84 Difference: $0.07
If TPW meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges).

Current consensus price target is $4.69, suggesting upside of 7.1% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.3

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Macquarie rates UNI as Downgrade to Underperform from Neutral (5) -

Due to Universal Store's recent share price outperformance and current macroeconomic uncertainty, Macquarie lowers its rating to Underperform from Neutral, while keeping its $3.50 target price.

The analyst sees a risk of downside to consensus forecasts from cost inflation and potential for deterioration in demand among youth customers. 

Target price is $3.50 Current Price is $5.00 Difference: minus $1.5 (current price is over target).
If UNI meets the Macquarie target it will return approximately minus 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $4.88, suggesting downside of -2.7% (ex-dividends)

The company's fiscal year ends in June.

Forecast for FY22:

Forecast for FY23:

Market Sentiment: 0.5

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

Citi rates WDS as Neutral (3) -

Citi offers a 1H22 earnings preview, post the June quarter guidance update from Woodside Energy. The analyst is looking for profits of US$2.06bn and an interim dividend of US88.8c. The results are due to be announced August 30.

The broker highlights there is a wide range of earnings estimates for the 1H22 post the merger of the BHP petroleum assets. Consensus stands at US$1.76bn.

Woodside Energy is expected to offer updates on the expected synergies and the reserves at the results announcement.

The Neutral rating is retained and the price target is lowered to $32.60 from $33.40.

Target price is $32.60 Current Price is $32.77 Difference: minus $0.17 (current price is over target).
If WDS meets the Citi target it will return approximately minus 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Current consensus price target is $34.66, suggesting upside of 6.3% (ex-dividends)

The company's fiscal year ends in December.

Forecast for FY22:

Forecast for FY23:

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.

Market Sentiment: 0.7

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources